Dangote Increases Petrol Prices by N61 As Bulk Sales Resume
- Dangote Refinery has resumed bulk petrol sales after suspending orders for days, which led to an increase in petrol prices
- The new rate, which is a N4 increase, is now higher than the prices offered by several private depots
- Industry players had hoped that the resumption of Danagote sales would help reduce the market price
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The prospect of lower fuel prices at filling stations has been dashed as the Dangote Refinery increased the ex-depot price for Premium Motor Spirit (PMS), popularly known as petrol, to N881 per litre.
The new price is N4 or a 0.45% increase when compared to the N877 on Friday, October 18 when the petrol bulk sales resume.
Source: Getty Images
The adjustment is also N61 higher than the rate announced in September, with a promise to lower retail prices to N841.
Dangote petrol rate vs market
With the latest change, Dangote Refinery is now selling petrol above several private depot operators, according to market data from Petroleumprice.ng.
Checks across the market revealed that at least six depot operators are currently selling petrol below N881 per litre.
These include Aiteo and Optima, both offering the product at N878 per litre, while Rainoil Delta, Matrix Warri, Sahara, and A.Y.M Shafa sell at N880 per litre
Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng explained the impact of Dangote petrol price.
He said:
“Dangote Refinery’s huge size and capacity mean it largely dictates the pace of pricing, and depot owners will likely adjust to stay competitive.”
Source: Getty Images
Dangote refinery halts crude oil intake
Meanwhile, the management of Dangote refinery has explained its recent reductions in crude oil purchases.
According to the refinery, the decision to halt crude intake was a strategic response to elevated global prices, not the result of operational failures.
The company made the comments during a media tour aimed at addressing concerns over crude volumes and potential outages at the facility, Reuters reports.
Edwin Devakumar, vice president of Dangote Industries said:
"No factory runs at 100% every day without issues. "What matters is whether any problem affects final production."
Speaking on recent staff sack, Devakumar revealed that the company recorded 22 sabotage attempts, including efforts to ignite fires and interfere with equipment.
He also noted that the refinery’s fire safety and automated control systems effectively averted any damage.
Devakumar said.
"There were attempted fire incidents we have the dates and units documented. Some tried to break down instruments, but the system overruled them."
NNPC increases petrol price
Earlier, Legit.ng reported that following the Dangote Refinery’s suspension of petrol sales, oil marketers and the Nigerian National Petroleum Company Limited (NNPC) increased the pump price of petrol.
A visit to several filling stations showed that pump prices had been adjusted from an average of N865 per litre to above N910, depending on the outlet.
NNPC Retail outlets raised prices to N922 per litre in Lagos and above N950 per litre in several states.
Major marketers such as MRS, Ardova, Matrix, De Petroleum, Fatgbems, Petrocam, TotalEnergies, Pinnacle, and Mobil also have new prices.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
